Low cost Chinese manufacturing and the Internet have played big roles in keeping inflation low.
In the aftermath of the global financial crisis the return of inflation was a real threat. Central banks everywhere were rolling the presses on an unprecedented scale.
In November 2008, the US Federal Reserve unveiled QE1, a quantitative easing program that involved the Fed purchasing about US$1 trillion in mortgage backed securities. The Fed finally ceased purchases in October 2014 having purchased US$4.5 trillion in bank debt.
The money used to make these purchases was not real in the way that you and I understand it. Created with the stroke of a pen, it showed up as a few more zeros on a screen. As long as you’re a government with a compliant central bank, money can indeed be created from thin air.
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